Yen US dollar fall versus euro, sterling

Story link: Yen US dollar fall versus euro, sterling

The euro hit another all-time high in relation to the yen on Monday, while sterling was at its highest level in 15 years against the Japanese currency. The declines for the yen came as investors continued to seek out high-risk carry trades in which they sell low-yielding currencies such as the yen to finance the deals. This appetite for risk continued even though the equities markets in China saw significant declines during the day.

The euro was at a record high of ¥164.42 versus the yen during the session and was up 0.1 percent to ¥164.23 at mid-session in New York. Sterling was 0.3 percent higher versus the yen at ¥242.58.

The UK currency was higher generally on the session ahead of the next meeting of the Bank of England’s Monetary Policy Committee on Thursday. While most analysts believe that the MPC will hold interest rates at 5.5 percent for the time being, most also believe that interest rates will rise to 5.75 percent by August. At midday in New York, sterling was 0.1 percent higher against the euro to £0.6773 and it had added 0.5 percent to $1.9924 versus the US dollar.

Elsewhere, the euro also rose against the greenback, adding 0.3 percent to $1.3491, while the Canadian dollar was higher against its US counterpart again, adding 0.3 percent to C$1.0550 versus the US currency to another 30-year high. The Canadian currency was helped by rising oil prices.